4 Screens

Dividend Screens

Consistent dividend payers with high yield. Build a portfolio that generates regular income while your capital grows.

4

Beginner

0

Intermediate

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Advanced

About Dividend Investing

Dividend investing is about building a portfolio that pays you to hold — generating regular income even when markets are flat or falling. In India, where FD rates hover around 7%, dividend stocks need to offer genuine, sustainable yield above that bar to be attractive on an income basis. But the dividend yield shown on screeners is a trap if you don't look behind the number.

High dividend yield can mean two very different things: a genuinely generous company returning cash to shareholders, or a distressed business whose stock price has fallen so far that even a modest dividend appears as a high percentage yield. The screens here distinguish between the two using payout ratio (below 80% — the company retains enough cash to grow and sustain dividends), profit growth (dividends are coming from rising earnings, not borrowings), and ROE (the underlying business is healthy).

Rising dividends are more powerful than high static yields. A company that paid ₹5 per share 5 years ago and now pays ₹12 has compounded your dividend income at 19% annually — regardless of what the stock price did. Over a 10–15 year horizon, dividend growth stocks that you bought at a 2–3% yield often deliver an effective yield of 10–15% on your original cost. That's the compounding dividend story most retail investors never experience because they chase the highest current yield instead of the fastest-growing one.

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